Serbia Economic and FDI Outlook

öσ o σ NNW 5 20 15 25 30 In Line With the Higher Borrowing Costs, Credit Activity National Bank of Slowed Down in 2023 and in the Beginning of 2024 Credit activity lost pace in the beginning of 2024.... ... due to lower corporate lending in January Chart 27 Bank lending to enterprises and households (y/y rates, constant exchange rate 31 October 2022, in %) -10 -15 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Households ― Enterprises -Total 20 15 10 сл 5 Chart 28 Contributions to y-o-y corporate lending growth (in pp, constant exchange rate 31 October 2022) 0 -5 -10 -15 2013 2014 2015 2016 2017 2018 2019 Investment Export Other Y-o-y lending growth rate, in % 2020 2021 2022 2023 Liquidity and current assets Import Transaction accounts 2024 . In February total domestic loans slightly slowed down to 0.5% y-o-y (from 0.6% y-o-y in January). Lending activity dynamics reflected tightening of the monetary policy of the NBS and the ECB, the maturing of guarantee scheme loans, the and tightened bank lending standards. In February loans to households accelerated y-o-y growth to 2.1% (from 1.5% in January), while corporate loans declined by 1.0% y-o-y (after declining by 0.3% y-o-y in January). Investment loans which rose by 4.4% in 2023, slowed growth to 2.4% y-o-y and made 41.9% of total corporate loans in February. Liquidity and current assets loans declined by 3.3% y-o-y and made 46.2% of total corporate loans in February. •Micro, small and medium-size enterprises loans share in total corporate loans amounted to 59.1% in February. 16

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